On Friday 9 July, the European Commission approved a EUR 750 million German scheme in the form of a State guarantee for loans that may be taken out by the Travel Insolvency Fund.
The aim of this support is to reimburse travellers in the event of package tour operator insolvency.
Under the Package Travel Directive, package travel organisers are required to ensure that travellers will be reimbursed for sums they have already paid for services, which were not ultimately provided, either fully or in part, because of the insolvency of the organiser. To this end, Germany will establish the Travel Insolvency Fund, financed by contributions from package travel organisers, which will be operational from 1 November 2021.
Germany notified to the Commission a EUR 750 million State guarantee to ensure that sufficient resources are available for the refund of consumers for cancelled travel services, in cases where package travel organisers become insolvent and available assets in the Fund are insufficient to cover the consumer refunds.
The aid will cover 100% of the loan amounts, on condition that the overall amount guaranteed does not exceed the target capital of EUR 750 million minus the assets of the Fund and the collaterals provided by the package travel organisers. (Original version in French by Lionel Changeur)